Los Angeles County is investigating Farmers Insurance Company’s handling of insurance claims filed by policyholders affected by the January 2025 Eaton and Palisades Fires, officials announced Wednesday.
The investigation focuses on potential violations of California’s Unfair Competition Law and “follows growing complaints from residents about delays, refusals to pay for testing and remediation of lead and other contamination, underpayments, and denials of legitimate wildfire claims,” according to a statement from the county.
“Eaton Fire survivors did everything right — responsibly paying their premiums year after year — but when disaster hit, Farmers left them with a contaminated home and refused to pay for testing and cleanup,” County Supervisor Kathryn Barger said. “That’s an unfair business practice that needs to end now. My constituents shouldn’t have to walk back into homes with lead and asbestos because an insurance company won’t pay for the test that would prove it’s there. We are going to hold Farmers accountable to the law, and if they’ve broken it, they will answer for it.”
Officials said that at a recent meeting with Eaton Fire survivors, Farmers policy holders told the county that the company has been slow, resistant or outright refused to pay for testing for contamination by qualified industrial hygienists, forcing residents to pay for testing out of pocket.
Testing allegedly revealed that many standing homes are contaminated with unsafe levels of lead, asbestos, chromium and other toxic substances. Survivors further reported that Farmers is refusing to pay for adequate remediation of these contaminants and declining to cover ongoing living expenses.
Farmers Insurance issued a statement saying the company is dedicated to helping wildfire victims “recover and move forward.”
“Since the fires, we have dedicated significant resources to assisting affected policyholders and providing support throughout the claims process,” according to the company. “Serving our customers during difficult times is at the heart of what we do, which is why each claim is reviewed individually, taking into account the specific circumstances of the loss and the coverage provided under the policy. We remain focused on handling claims with care, consistency and attention to each customer’s unique situation.
“As always, we operate in accordance with applicable laws and regulations. We do not believe the inquiry accurately characterizes our actions or practices and will cooperate through the appropriate process.”
County Supervisor Lindsey Horvath said policyholders who have paid “million of dollars in premiums … deserve the benefits and support they paid for.”
“Families whose homes survived the Palisades and Eaton Fires but remain damaged or contaminated should not be forced to choose between returning to an unsafe home and financial devastation,” Horvath said. “Farmers has had more than enough time to do right by their customers. They cannot evade the law or their responsibility to the people who paid for their coverage. Our residents deserve justice and Los Angeles County is taking action.”
In August, following similar action by the state, the county filed a lawsuit against State Farm insurance company, also alleging widespread mishandling of claims by policy holders in the Eaton and Palisades burn zones.
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